Safaricom plans to insure millions of mobile users to increase revenue

Omokolade Ajayi -
Key Points
  • Safaricom expands into mobile phone insurance, partnering with insurers to cover devices against damage or theft for Kenyan users.
  • The mobile insurance offering follows a 2018 partnership with Jubilee Insurance, enhancing Safaricom’s financial service portfolio.
  • Safaricom's regional growth, led by Peter Ndegwa, includes success in Ethiopia, with over 52 million subscribers and a 15% revenue increase.

Safaricom, East Africa’s largest telecom operator led by Kenyan tycoon Peter Ndegwa, is expanding its business model by venturing into the mobile phone insurance market, a move designed to diversify its revenue streams.

This step follows the company’s 2018 partnership with Jubilee Insurance, which introduced a home insurance product for Safaricom’s Home Fibre customers. Building on this, Safaricom is now targeting mobile phone insurance, focusing on protecting devices against damage or theft for millions of users across Kenya.

Safaricom launches tailored mobile insurance

In its latest move, Safaricom has partnered with several insurance firms to offer coverage for mobile phones, addressing a relatively small market where premiums typically range from Ksh1,000 ($7.75) annually for basic protection.

However, Safaricom’s offering is more tailored, aiming to insure higher-end devices with premiums based on the purchase price or current value of the device, ranging from Ksh5,000 ($38.72) to Ksh300,000 ($2,324).

This move aligns with Safaricom’s broader strategy to broaden its financial services offerings, which also includes its recent approval by the Capital Markets Authority (CMA) to launch the Ziidi Money Market Fund.

This new fund is designed to attract Kenyan investors seeking secure, higher-yield savings options, and builds on the success of its first fund, MALI, launched in 2020. Safaricom’s foray into mobile insurance will also position it to compete with established players like Orient Insurance, which offers similar policies through aggregators such as Bismart.

Peter Ndegwa’s leadership drives Safaricom’s regional expansion

Since it was founded in 1993, Safaricom has transformed from a telecom provider into a diversified technology and financial services giant, with its mobile money service, M-PESA, revolutionizing Kenya’s financial sector and providing millions of unbanked individuals with access to essential financial services.

Under Ndegwa’s leadership, Safaricom has also expanded regionally, achieving notable success in Ethiopia, where its subscriber base has exceeded 52 million. Despite challenges such as currency volatility and economic pressures, Safaricom reported a 15.07 percent revenue increase for the first half of 2025, reaching Ksh189.42 billion ($1.47 billion). However, its profitability was impacted by the volatile Ethiopian currency and domestic market conditions.

Safaricom’s entry into mobile phone insurance is part of its ongoing efforts to expand financial services across East Africa, further reinforcing its role as a leader in financial inclusion and offering a wider range of products to its growing customer base.